Merger of US Airlines – A Sign of Growth for the Workers, Shareholders and Passengers

Laborers are the most precious wealth of any company and so the Labor Day is celebrated in US and all over the world for their achievements for their movements and renews their fight for workplace protections and wages and benefits to support their families. It reflects the rights of the nation’s union members.

America entered the stage of bankruptcy in late 2011 when the stakes were incredibly high. All of the members including the workers and shareholders of airlines were hurt and they all bore the brunt of economic losses during this period. The American unions are some of the largest creditors in the bankruptcy so it is the major concern of the company to think about the best long-term option for job security for more than 50,000 American Airlines union members.

At this juncture they hired the financial experts and legal advisors to review America’s operational and financial prospectus from all possible angles. As a consequence they determined to merge with the US airways as this was the only option left with them to compete effectively with the large network carriers.

The merger is about the growth of the workers, shareholders and also for the benefit of the passengers. Consequently the passengers will have a better choice for more competitive air carriers that cost comparatively less than the other carriers. The merger will also result in the formation of new American Airlines that will be in a better position than today’s and can earn the business of consumers at home and abroad in the face of stiff competition from international carriers.

It is a primary factor to be concerned that the success of any company depends upon job security of their workers. Merger of the Airlines is the only solution for the protection of the interests of all three constituencies: employees, shareholders and passengers.

But unfortunately the Department of Justice is least concerned about this and has filed a lawsuit seeking to stop the matter of goodness for both workers and passengers. In order to block this merger the department of justice wants to maintain the status quo. This will result in limited choices in front of the consumers and also the US airlines and the Americans will lag behind in attracting more customers.

In previous mergers the department of Justice was not at all bound by the status quo and they took their step forward to reconfigure the industry. All the 70000 employees of American Airlines want that they should be given footing on the competitive landscape that the government created

Now the unions have joined hand together and their voices call on the Department of Justice to let them compete as the new American Airlines whereby they can provide their consumers with superior choices and services they want to view in an American Airline. So it’s high time now to let the merger move forward so that all the 70,000 workers can enjoy the job security, the shareholder can enjoy the value creation which is only possible for an effective competitor.